City Council - Regular Meeting

Tuesday, May 12, 2026

The Lake Havasu City Council approved several consent agenda items, including intergovernmental agreements for municipal court services and purchases with Lowe's Home Centers. The council also discussed an airport lease audit and approved amendments to engineering service agreements and construction contracts for city infrastructure projects.

About this meeting

Government Body
City Council
Meeting Type
City Council
Location
Lake Havasu City, AZ
Meeting Date
May 12, 2026

Transcript

255 sections (from 313 segments)

0:11 – 0:30•Speaker 1

Good evening, and welcome. I call to order the Lake Havasu City Council regular meeting on Tuesday, 05/12/2026 at 05:30PM. We'll have an invocation from pastor Kay Zimmerman with City on a Hill International Church, followed by the pledge of allegiance led by John Woodard with the Woody Stock Blues Hand Up Foundation. Pastor.

0:30 – 1:11•Speaker 2

Good evening. Just before we pray, I wanna welcome everyone to Sunday evening under the bridge at 06:00. We're gonna celebrate the rededication of America back to God and dedicate Lake Havasu City to God. And everyone's excited about it. We have the high school band coming, and we've got a little skit. We've got military honors. So it's good special music. It's gonna be a great time of celebration, so I'd like to see all of you there. So that's Sunday evening, May seventeenth, 06:00. Okay.

1:11 – 1:55•Speaker 2

Let's pray. Father God, we just thank you for this great city. We thank you that you've had your hand on this city. You have plans and a purpose for this city. You've had me praying for this city for forty eight years now, and I'm just excited, God, that you're about to do some amazing things in this city. I thank you, father God, for our mayor, Cal. I thank you for each leader, all of the council, fire department, police department. I thank you, God, that they watch over us. I pray protection over them, protection over all of us, oh, God. And I wanna read the decree that God gave me in 2007 to pray over this city.

1:56 – 2:33•Speaker 2

And he said, pray it till you see it, so here we go. I decree over the city of Lake Havasu City that this city shall be a city of righteousness that honors God in all her ways, a city of hope to all her people and all those who come here, a city of light where darkness finds no room to hide, a city of love that prospers in all her ways, providing prosperity and goodwill to all her people as well as those surrounding her, and a city of peace to all who dwell here in the mighty name of Jesus Christ. Amen.

2:33 – 2:59•Speaker 3

Amen. Ready? Begin. I pledge allegiance to the flag of The United States Of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

3:04•Speaker 1

Thank you. And John, if you'd like to share a little bit about your organization and what, the Woodstock Blues Hand Up Foundation does.

3:10•Speaker 3

Sure. Thank you very much. Yeah, everybody, I'm the CEO for Woodstock Blues, the Hand

3:16•Speaker 1

Up Actually, just if you look at us, it'll it'll pick you up on the microphone better and those watching a whole new yeah, video.

3:22•Speaker 3

Yeah, yeah. Well, this microphone is weird looking. Hey. Okay, so yeah, I'm John Woodard. I am the CEO of Woody Sock Blues, a hand up foundation.

3:32 – 4:15•Speaker 3

We raise awareness and we assist young adults that are living with autism. So once they turn 18, sometimes they need a little help. But also how we do that, our major fundraiser for that is Woody Sock Blues Festival that happens here at Windsor Park, at the State Park Windsor 4 every March. I bring in bands from all across the country, award winning bands, not just little, I mean big, I bring in some pretty big people. And the cool part about what I do, I mean for Lake Havasu is I get every town that I bring bands from, every town across The United States is reading about Lake Havasu and not just I mean, New York.

4:15 – 4:50•Speaker 3

We're talking Houston. Awesome. All over the place with Las Vegas. Then we had an article down in Greece this past year. We had one in Brazil. The funny part about the one in Brazil was it's written in Spanish. Anyways, that's a little bit about what I do. And, you know, I do look forward to maybe maybe partnering with the city on this at some point and maybe it's something we could agendize and we can maybe brainstorm on something and come up with something really cool. So what if I brought Walter a trout? Oh my gosh. Anyways, thanks so much.

4:50•Speaker 1

Thank you so much for being here today. We appreciate it. Alright. We'll move on to item four, which is our roll call. Miss Williams, if you please call the roll.

4:57•Speaker 4

Council members Nancy Campbell? Here. Jenny Coke?

5:03•Speaker 6

Here. Cameron Moses? Here.

5:06•Speaker 4

Michelle Lin? Here. Vice mayor David Diaz?

5:09•Speaker 4

Mayor Cal Sheehy? Here. Thank you.

5:11•Speaker 1

Thank you. Item five is the consent agenda. Would any of the council members like to remove any of the items for separate discussion?

5:16•Speaker 7

Mister mayor?

5:17•Speaker 1

Yeah. Council member Lynn?

5:18•Speaker 7

Would like to take off two. Can we take off item 5.2? And can we take off 5.4?

5:30•Speaker 1

Yeah. Council member Koch?

5:32•Speaker 8

Motion to approve consent agenda minus item five point two and five point four as presented.

5:41•Speaker 1

We have a motion from council member Koch, a second from council member Lynn. Is there any or actually, we're ready to vote.

5:54•Speaker 4

Motion carries seven to zero.

5:56 – 6:10•Speaker 1

Thank you. Alright. We'll hear, item 5.2 separately, which is resolution number twenty six dash three nine zero nine, approving the intergovernmental agreement with Kingman, Arizona for municipal court weekend and holiday coverage services. Judge Calali?

6:11 – 6:27•Speaker 9

Aloha, mayor, counsel. Thank you for the opportunity to present to you tonight. They're actually five point three is also the same thing. I I know that it wasn't taken off, but I just wanted to make sure that counsel is aware of that. This is the extension of an agreement with Kingman that we've been doing for a year.

6:28 – 7:07•Speaker 9

It allows us to see their prisoners on weekends and holidays, and this extension would be a five year extension. But the way that we do it and and you may have you might not know this, but every year, we will make sure that what we are doing, we are getting paid for, so we make sure that that everything works out so well. Kingman and Bullhead actually flopped the amounts that they're having to pay because of the the data that we received over this. And so the Kingman's paying more this year than they were last year, and that will change each year depending on on what our our stats say at the end of the year. We do that in January so that everybody is ready for the budget.

7:07 – 7:25•Speaker 9

Just for your information, the Bullhead agreement is only one year because they didn't have a judge at the time, and so they didn't wanna do it without the judge being there. But the judge is there now wants to have a multiyear one. It was just too late in their budget cycle to be able to do that. So this time next year, we'll probably have that same thing with with Bullhead.

7:26•Speaker 1

Thank you, judge. Other questions of judge?

7:28•Speaker 7

You said this is five years?

7:30•Speaker 9

This one is a five year.

7:31•Speaker 7

So every year, we'll get paid that

7:33•Speaker 9

that amount? No. It will it will be different every year depending on the statistics.

7:36•Speaker 7

Okay. And can I I probably should know this answer, but does that money go into the general fund that we get, or does that go back into the courts?

7:43•Speaker 9

No, that goes to the General Fund, yes.

7:46•Speaker 7

Alright, perfect, thank you.

7:47•Speaker 1

Uh-huh. Are there any other questions from members of the Council for the Judge? In preparation of this meeting, I was actually surprised it's already been a year that we I know.

7:55 – 8:11•Speaker 9

These initial grades. It has been a year. But, you know, our our people do good with data, and then they really dig into making sure that that we're getting reimbursed for the time and and effort that we put into it. And so this reflects that, and we'll continue to do that every year. Yeah.

8:11 – 8:29•Speaker 1

Thank you. Alright. This is a public hearing. Would anyone like to address the city council on this item? Seeing that. We'll close the public hearing, bring it back to council for discussion or motion. Mayor? Yeah. Councilmember Dolan? Motion. Please.

8:29•Speaker 10

Move to adopt resolution number 26Dash3909, approving the intergovernmental agreement with Kingman, Arizona for municipal court weekend and holiday coverage services. Second.

8:39•Speaker 1

We have a motion from council member Dolan, a second from council member Campbell. Is there any additional discussion? Seeing none, we're ready to vote.

8:56•Speaker 4

Motion carries seven to zero.

8:58•Speaker 9

Thank you, mayor. Thank you, council.

8:59•Speaker 1

Thank you, judge Calali. Then item 5.4 is ratify the cooperative purchases of supplies and products with Lowe's Home Centers LLC. Mister Young?

9:14 – 9:43•Speaker 11

Good evening, mayor and council. We brought this before you, as, well, I guess I got elected to do it because I spend the most being in charge of facilities. But we, every year, do much of our own improvements, our own repairs. So we use Lowe's quite a bit. That being said, each and every department and each and every division within that department have their own special projects that they do, within their budget. So, this year,

9:43•Speaker 12

it's probably one of the

9:44•Speaker 11

first years that we've went over like this, but, a lot of good things happening with it. So with that, I'll take any questions.

9:51•Speaker 1

Thank you, mister Young. Are there any additional questions for mister Young?

9:54•Speaker 7

Yes. I just have a I guess I have a question. So that what we approve is a $100,000 each year. Correct?

10:01•Speaker 11

Well, anytime we go break the $100,000 barrier, we have to bring it to you guys.

10:06 – 10:23•Speaker 7

Okay. And then, I had somebody ask me to bring this up. Is there, do you have specific people that in your departments that are given the permission to go purchase these things? Like, could you tell me how that works? Not everybody has a credit card, obviously, to go and purchase these things. Like, is there

10:23•Speaker 11

Anyone in my department that is doing projects and stuff has the ability to go and purchase things as they need it.

10:29•Speaker 7

Okay. And then who reviews those those receipts? Advisors. Okay.

10:34•Speaker 11

And admin services.

10:36•Speaker 7

Alright. Thank you.

10:37 – 10:54•Speaker 1

Any additional questions from members of the council? Alright. This is a public hearing. Would anyone like to address the city council on this item? Seeing no, we'll close the public hearing. Bring it back to counsel for any discussion or possible motion. Mayor. Council member Koch? Motion. Please.

10:54 – 11:11•Speaker 8

Move to ratify prior routine purchases for supplies and products from Lowe's Home Centers LLC that exceeded the city manager's expenditure threshold and improve future routine purchases exceeding the city manager's expenditure threshold, but not to exceed the annual departmental budgets for the duration of the cooperative purchase agreement.

11:11•Speaker 1

Second. We have a motion from council member Coke, a second from vice mayor Diaz. Is there any additional discussion? Seeing none, we're ready to vote.

11:25•Speaker 4

Motion carries seven to zero.

11:27 – 11:51•Speaker 1

Thank you. Item six is correspondence, communications, petitions, announcements, and the city manager report. Item 6.1 is our investment report as of 03/31/2026. Miss Olson has included this for our review in your packet. It's also available on our website at lhcaz.gov for our residents to review. Item 6.2 is to announce vacancies on Lake Havasu City Boards, Committees, and Commissions. Miss Williams?

11:51 – 12:33•Speaker 4

Here in city council, this item is to announce vacancies on the Kalasu City Boards, Committees, and Commissions. The following is a listing of the current and upcoming vacancies. Board of Adjustment, three regular upcoming vacancies, two alternate upcoming vacancies. Parks and Recreation Advisory Board, one regular member that is current, two regular upcoming members, and one student member. Planning and Zoning Commission, one regular upcoming vacancy and two alternate upcoming vacancies. Anyone interested can submit an application to the city clerk's office. The deadline is 5PM, Friday, May 29. Applications can be found on the city's website and also in the city clerk's office. Thank you.

12:33•Speaker 1

Thank you. Item 6.3 is our city manager's report. Evening, mister Knudson.

12:38 – 13:14•Speaker 12

Good evening, mayor. Good evening, council. Lots to share with, with you this evening. Starting off with, some proud moments here as we're very proud to celebrate four outstanding Lake Havasu High seniors and dedicated members of our Havasu Youth Advisory Council Treasurer James Intac, historian Raiden Sari, Emma Trejo and Alana Green as they prepare to graduate and begin their next chapters in their lives. James plans to attend ASU in Barrett's Honors College majoring in civil engineering.

13:14 – 13:42•Speaker 12

We'd like to hire you after you graduate. Raiden will attend Southern Utah University to pursue aircraft maintenance and aviation certificates with a goal of becoming a pilot in the aviation industry. Emma plans to attend Grand Canyon University majoring in occupational therapy. And Alana is committed to attending the United States Naval Academy. So very, very distinguished careers that are about to unfold.

13:43 – 14:26•Speaker 12

They were recently recognized by Mayor Sheehy and Councilmembers Jenny Coke and Michelle Lynn for their dedication, their leadership, and service to the community. Congratulations. Your hard work, your leadership, and commitment continues to make a positive impact on our community, and we're very, very excited to see you all accomplish great things in the future. I'd also like to recognize outstanding achievements for our Fire and EMS programs, which recently earned some of the top technical skills assessment results for the state of Arizona. These state required assessments are based on Arizona Department of Education standards and both programs achieved a 100% student pass rate with the highest overall average in the entire State of Arizona.

14:27 – 15:19•Speaker 12

This accomplishment is a direct reflection of the hard work, dedication and mentorship provided by our instructors as well as the commitment shown by the students throughout the program. This year, all six seniors in the EMS class earned honored cords for graduation by maintaining strong academic performance and earning industry certifications with one student also earning an honor cord in fire. Congratulations to Kyle Crowe, Mia Dan Kosick, Dane Treisbach, Kaitlyn Kyer, Ellie Troffer and Alison Vittotow on this outstanding achievement. We're incredibly proud of these students and everyone involved in making these programs so successful. On 04/28/2026, the Arizona Section of the American Water Works Association held its annual competition known as Hydrant Hysteria.

15:19 – 15:46•Speaker 12

It's a lot of fun, and there's a lot of hard work that goes into this competition. There are two person teams that compete to assemble a standard fire hydrant as quickly as possible without any loose connections. So how quickly can you do that? This year, Lake Havasu City sent two teams to compete and came away with a thrilling victory claiming the number one position in the entire state of Arizona. This victory qualified the winning team for the national championship and that'll be held in Washington DC in June, just next month.

15:47 – 16:12•Speaker 12

Our winning team was Grants Fitzgerald and Dylan Politai. The others, Lake Havasu City team also competed, that was Sean Berryman and Eric Augusto. They placed fourth in the State of Arizona. The coach for both of the teams, we want to recognize Water Supervisor Greg Maples for all the work he accomplished. We're very, very proud of these four individuals and will be represented in the in the national competition.

16:16 – 16:50•Speaker 12

We're very proud to attend the Starline Elementary Kid Cities Dedication Day, one of the best days of the year. It's an immersive simulation that teaches students about the government, banking, entrepreneurship, and civic responsibility. Leading up to the event, the class that spearheaded the program participated in a kid style coffee with the mayor and city manager, although we drink Yoohoo instead of coffee. The kids asked thoughtful questions about local government and and how we operate. Mayor Levi Wilson of Kid City along with mayor Sheehy officially proclaimed May 8 as Kid City Dedication Day and exchanged keys.

16:51 – 17:31•Speaker 12

A big thank you to Vice Mayor David Diaz, Conservator Nancy Campbell and Cameron Moses, and the City staff who attended and supported this inspiring event for our future leaders. I like to recognize the advisors and members of the National Junior Honor Society for their thoughtful act of kindness in celebration of International Firefighters Day. The students visited our fire stations and delivered goodie bags along with encouraging messages for our firefighters as a way to say thank you for their service and dedication to Lake Havasu City. Gestures like this mean a great deal to our public safety teams and reflect the strong connection between our community and the people who serve it. We truly appreciate the students for taking the time to recognize and support our firefighters.

17:35 – 18:25•Speaker 12

The city clerk's office recently hosted a fun, informative candidate orientation, bringing together representatives from all city departments to provide candidates for the upcoming city council election with a behind the scenes look at local government operations. Attendees had the opportunity to learn about many services the City provides through presentations, we had tours, we had trivia, and interactive activities assigned to build knowledge and understanding of how departments work together to serve our community. I'd like to thank all the city staff who participated and helped make the day engaging, educational, and enjoyable for everybody that attended. And we're proud to recognize the fifty seventh Annual Professional Municipal Clerk's Week. And I wanna thank Kelly Williams and the city clerk's office team for the important work they do to keep the local government organized, transparent, and running smoothly each and every day.

18:25 – 19:13•Speaker 12

I I I thank you again to to city clerk Kelly Williams and your team, small but mighty Shannon Davis and Marcella Keylas for your dedication and service to Lake Havasu City. May sixth through the twelfth was National Nurses Week in Lake Havasu City. The mayor proclaimed the mayor's proclamation recognized the dedication, compassion, and the essential role nurses play in caring for our community each and every day. We'd like to thank all the nurses for their continued service and commitment to providing quality health care. Assistant City Manager, Anthony Kozlowski and Recreation Superintendent, Marcus McEntire recently accepted a generous donation check from the Lake Havasu City Rotary Club in support of our Teen Break program.

19:13 – 19:52•Speaker 12

We greatly appreciate the Rotary Club's continued partnership and investment in opportunities that support and engage our local youth. And finally, we have on Saturday, the Junior Sons basketball will be tipping off with a free kickoff clinic that will take place on Saturday, May 16. It'll be at Thunderbolt Middle School Gym. The clinic is open to the public for ages six through 12 and will feature basketball skills, drills, and games in a fun and active environment. We encourage families to come out and take part in this great opportunity for our youth, and there's some pretty cool jerseys that are involved. With that, mayor and council, that concludes my report for this evening.

19:52 – 20:25•Speaker 1

Thank you, mister Knudson. Alright. We'll move on to item seven, which is our public hearings. During each of the next seven items, we will have a public hearing. We will, open that up to anyone that wants to engage in the conversation. We can have a two way conversation at that point in this meeting on that particular item. Then there will be a call to the public at the end of the meeting that will be for items that are not on the agenda that someone might want to address the city council on. So we'll start with item 7.1, which is resolution number 26 dash three nine one three, appointing members to Lake Havasu City board, excuse me, Lake Havasu City Parks and Recreation Advisory Board. Miss Williams.

20:25 – 20:59•Speaker 4

Aaron City Council, the city received two applications requesting consideration for appointment as a regular member to the Parks and Recreation Advisory Board. One appointment is needed to fill the current vacancy of one regular member position. The application review panel conducted interviews for the Parks and Recreation Advisory Board on April 29 and recommends that Jason Esri be appointed to fill the regular member vacancy with a term ending 06/30/2028. Both applications were provided to you in your packet, and both applicants were also invited to attend tonight's meeting to answer any questions from the city council. Thank you.

20:59 – 21:13•Speaker 1

Thank you, miss Williams. Are there any questions from members of the council for miss Williams? Is there any discussion before we open the public hearing? This is a public hearing. Would anyone like to address the City Council on this item?

21:18 – 21:30•Speaker 1

Seeing now, we'll close the public hearing, bring it back to the council for discussion or possible motion. Mayor? It comes from Campbell.

21:30•Speaker 13

Please. I move to adopt resolution number 26Dash3913 appointing Jason Erdsry. Who's how spell that? How do you say that last name?

21:41•Speaker 13

Ezry? Yes. Thank you. As a regular member to the Parks and Rec Advisory Board with a term ending 06/30/2028.

21:52•Speaker 1

We have a motion from council member Campbell. We have a second from vice mayor Diaz. Is there any additional discussion? Seeing none, we're ready to vote.

22:19•Speaker 4

Motion carries seven to zero.

22:21 – 22:38•Speaker 1

Thank you. And, thank you to both of the applicants for applying, and, congratulations, Jason. And we'll, keep your application on file as well, Danielle. Thank you so much. Alright. We'll move on to item 7.2, which is amendment number one to the funding agreement with Go Lake Havasu regarding Go Lake Havasu board membership requirements. Miss Gary.

22:38 – 23:22•Speaker 14

Good evening, mayor and council. The city currently has a funding agreement with Go Lake Havasu for destination marketing that was entered into in May 2023. At the March 10 City Council work session, a request was made to revise the funding agreement to require a Gole Cavazoo board seat with voting privileges for a member of the City Council. Currently, the funding agreement requires a Gole Cavusu board seat with voting privileges for the City Manager and an ex officio seat for a member of the City Council. The proposed amendment for consideration tonight replaces the board seat with voting privileges with a member of the city council, which is section a seven of the funding agreement, and removes the ex officio seat, section a eight of the funding agreement, and remembers the remaining subsections.

23:22 – 23:33•Speaker 14

The Go Lake Havasu board recently amended its bylaws to reflect this change in the board's membership and approved the proposed amendment to the funding agreement last week. I'm happy to answer any questions that you may have.

23:33•Speaker 1

Thank you, miss Gary. Are there any questions of miss Gary from members of the council?

23:38•Speaker 7

Can I ask you a quick question, mayor?

23:39•Speaker 1

That's really

23:40•Speaker 7

Is that that takes off our city manager then? He no longer?

23:44•Speaker 7

Okay. I mean, he's not even gonna he's not on the board even as an ex officio. Correct?

23:49•Speaker 14

As it's drafted? Correct.

23:50•Speaker 7

Okay. Thank you.

23:53•Speaker 1

Would, Mr. Critchison, would you still attend the Board meeting as a partner of the city and give the city report?

24:01 – 24:14•Speaker 12

I would, serve if the Going Public Policy Board indicated that, as an ex officio. So I would attend. I'd learn about progress and activities that are happening and then update the board on things that are related to the city. Mhmm.

24:14 – 24:39•Speaker 1

Perfect. Yeah. That's that's important to me that we have the council liaison as well as the city manager's office represented at the meetings. Thank you. Alright. Are there any other questions from members of the council before we open the public hearing? Alright. This is a public hearing. Would anyone I'd like to address the city council on this item. So just make your way to the podium and state your name for the record.

24:42•Speaker 1

Alright. We'll go ahead and close the public hearing and bring it back to counsel for any discussion or possible motion. Mister mayor? Yeah. Councillor Dullen?

24:47 – 25:26•Speaker 10

I just wanna say something. I'm a little frustrated about how all this happened and I encourage people to go back and watch the work session. It wasn't a counsel work session because the counsel didn't do anything or have any discussion. We invited people from the community, from the board. We get here. You have fifteen minutes to talk. Talk about your bios. Do this. And then they were interrupted in the meeting even though they were told to do that, and we interrupted them. I wanna hear what the people have to say. I wanna hear what the people to say. And we interrupted the meeting twice to hear what the people had to say. But okay. We represent the people. We are elected to represent you guys.

25:26 – 26:02•Speaker 10

I love that all of you guys came out to this meeting, and you're getting educated. But there's tons and tons of other people in the community that aren't here, and I represent them too. So our goal is we're supposed to listen to everybody. It doesn't you you don't always have to come to us in a meeting and call to the public and say something. You can talk to us outside the meetings, get information, and then we represent you guys. So I just it really bothers me that we didn't have anything to do. We didn't have discussion. We didn't fix anything. There is a problem with Go Lake Havasu, and I don't think that changing the voting member really did anything. Like, we made such a big deal about it, and, really, the only people that talked were some candidates.

26:02 – 26:45•Speaker 10

And and the people we've already heard about that we know there's issues with with with the board, and and what are we gonna do with with those issues that have been addressed? So I feel like, great. We appointed somebody, but we didn't solve anything or do anything. And so if we have another council work session, I hope council can weigh in. And it's not about just call to the public and hear what the the people in the audience came because I represent 60,000 people in this community, and there's a lot of people that when I talk to, they're like, Jim, I don't follow city council. That's your job. That's why I elected you. That's why you're there. So I just hope that we now that we solved at least we've fixed this little thing, we can figure out Go Lake Havasu and actually do something about it. So and and next time we have a work session, it's not just open up call to the public to have people talk.

26:45•Speaker 10

It's that we get to talk because we get to do this or that.

26:49•Speaker 1

Yeah. Thank you, councilor Mardolian. Vice mayor Diaz? Yeah.

26:52 – 27:19•Speaker 6

I I couldn't agree more that it was it was probably a it was well, not probably. It was not a very good work session as a work session is supposed to be run. But there's been a comment made that you just made about that people were asked to speak for fifteen minutes and then they were cut off. Where did you hear that from? I'm just curious. Because I didn't certainly didn't do that. I certainly never told someone to come to the council and talk for fifteen minutes, and then I cut them off on purpose. That did not happen on my I mean, I don't know where that came from.

27:20•Speaker 10

Did you coordinate with the Golak Havasu board?

27:22•Speaker 10

Tell them that that they scheduled to come and what they were told to talk

27:26 – 27:47•Speaker 6

I I didn't actually actually, I shouldn't say yes. I did not coordinate with them. I was told they were gonna come, and I cut I I did cut them down as far as the amount of time they were gonna speak. I actually specifically said you have about five to seven minutes to speak. I I did not encourage them to come and speak and and give their bios and all that. That was and I had nothing to do with that.

27:47•Speaker 10

So you coordinated the work session but didn't talk to Gaulay Kavasu? And you you didn't know who was coming until they showed up?

27:52•Speaker 6

No. I was no. I was told who was coming. I was the keyword, I was told who was coming.

27:59 – 28:35•Speaker 6

Well, by by the mayor and by the city council I mean, the, Golek Habasu board that called me and told me they were gonna come and speak. I had no idea that there was even gonna be a until until the mayor told me, which is which is right, that there was gonna be a gentleman from Phoenix coming here to tell us about tourism. I didn't I didn't plan that. But I agree. I we just had the meeting last week with GoAcab. So it was actually a meeting. We we spoke about our concerns, but I told him it was not a good work session. It really wasn't. It wasn't what a work session should be where it should be us talking. Like you just said, we should be talking most of the time, and then like we do in normal work sessions.

28:35 – 28:46•Speaker 6

But this is just a good step in the right direction. They've been very forthcoming at the last meeting. We talked about a lot of things, and so this is not exactly how we wanted to go, but it's a first step in the right direction is what the way I look at it.

28:47 – 29:24•Speaker 1

Yeah. Just for perspective of those that don't wanna go back and watch the the the last meeting, that occurred, we really were up against the clock. So we had an hour and a half set aside for the work session, and we exceeded that. And we had a hard stop we had a council meeting that started at 05:30 right after. So, some of those dynamics, when council or vice mayor Diaz had brought the item forward, he elected to work through my office. And so, I did help, the vice mayor coordinate, the agenda item and brought that forward. So just so we have some clarification of how that occurred. Alright. Are there any other, comments, or possible motion?

29:24•Speaker 13

Here. I motion.

29:25•Speaker 1

Okay. Councilmember Campbell?

29:26•Speaker 13

I move to approve the amendment number one to fund to the funding agreement with Gole Cabasu.

29:32•Speaker 1

Second. We have a motion from councilmember Campbell, second from vice mayor Diaz. Is there any additional discussion? Seeing number, ready to vote.

29:46•Speaker 4

Motion carries seven to zero.

29:48•Speaker 1

Thank you. Next item is item 7.3. It's a presentation on airport lease audit executive summary prepared by AeroPlex Group Partners. Mister Turner.

29:58 – 30:42•Speaker 15

Hey. Good afternoon, mayor and council members. As you may recall, the contract for hiring Ascension Group Partners was brought before the city council in 08/26/2025. And since that time, their team has reviewed and looked at the leases and the various components of the administrative framework of the Lake Havasu City Airport. And today, we're joined virtually by the Ascension Group Partners team to present their findings, observations and their recommendations. And we appreciate the time and effort they've dedicated to this process and look forward to hearing their insights as we continue planning for the airport's future. So at this time, I will turn it over. They're joining us virtually, as I've mentioned, to the AGEP group, and they should be out in there. Thank you.

30:43 – 31:07•Speaker 16

Good evening, mayor and members of the council. It's a pleasure to be here. My name is Kurt Castagna. I'm the president of Aeroflex Group Partners doing business as Ascension Group Partners. I'm joined tonight by with Gloria Bouillon, who is really the program manager that led this effort, along with myself who did the on-site visit there at Lake Havasu Airport.

31:07 – 31:58•Speaker 16

I'd like to start off by saying it's it was a pleasure to do the work, and it was and and it was a pleasure to see what a thriving economic airport you have. You have a compared to many airports, we have 25 airports currently that we're consulting with, and and you should be proud of the airport you have and the evolution that it's taking as being an integral part of your community, bringing economic value. I'm gonna turn it over to Gloria in a second who will go over the executive summary and the findings at a high level. But we did provide your team, staff team there, a 23 page detailed report on our recommendations and findings there. I would say that I think your client and tenant base there are very invested and interested in continuing to make improvements to your airport.

31:58 – 32:16•Speaker 16

And, I think with some of the policy and some of the recommendations that we would make administratively to you, that you have solid footing for a very good start. So with that, Gloria, I'll turn it over to you if you wanna go over the recommendations, and we're certainly available to answer any questions you have too.

32:16•Speaker 5

Thank you, Kurt, and thank you, Kip. Hi, folks. I'm just gonna share my screen now.

33:03•Speaker 1

Miss Bouillon, do you have the permissions to be able to share your screen?

33:06 – 33:20•Speaker 5

I yeah. I apologize. I do. It was working before, and now, I I apologize. I don't know what happened. Kurt, I'm not sure if you're able to kick it up on your screen, and I can talk.

33:21 – 33:36•Speaker 16

Let me try. Yes. It's not giving me the permissions either.

33:40•Speaker 1

So we we have the presentation, so our clerk will will pull it up, you'll be able to see it on the screen, miss Buion, and then

33:48•Speaker 16

follow along. Are you able to are you able to see that?

33:52•Speaker 5

I yep. Yes. I can see that. Okay. I apologize about that, folks.

34:02 – 34:42•Speaker 5

So as a as as we discussed, this was a a very detailed report. There are exhibits in the report as well. But as a brief summary, the report was prepared to evaluate the current governance, the leasing fees, and commercial service framework at the airport. The the review was intended to help the city understand whether the airport policies, the leasing documents itself, so the the service obligations that were in each lease, and we'll go into a little bit more detail, further about that. And then the administrative policies, and practices still reflect how the airport is operating today.

34:42 – 35:15•Speaker 5

And I understand there's a master plan update that was that was done. So, really, we wanted to look at the the entire ecosystem of the airport. The findings show that many of the airport's current lease and service requirements were developed at different times. So some of the master leases, we evaluated one, two, three, four, and six site. And the the leases, because they were done at different times, they're not fully aligned with the airport's present operating environment.

35:16 – 36:45•Speaker 5

Several requirements are spread across city code, individual leases, fee structures, fee schedules, policies, and informal practices, which can make the administration enforcement and lease extensions and future development decisions more difficult for the airport, the city, tenants, current tenants, and possible future tenants. And so the purpose of the recommendations updates is to give the city and the airport a modern, more consistent, and FAA defensible framework for managing the airport properties, evaluating the leases that are expiring and supporting private investment while preserving the city sponsor control and guiding the future aeronautical development. So the the overall findings, because the airport again has such capital needs, long term capital needs, the 2020 airport master plan identified approximately 43,000,000, excuse me, in long term development with a local share of about 4,500,000, and this is all within the detailed report. But just a a an overview. And because the airport budget must support airport operations and with the local match, excuse me, obligations, the lease terms, rates and charges, land use, and development decisions need to be aligned with the long term financials self I'm sorry, self sustainability.

36:46 – 37:21•Speaker 5

And because the existing documents, that we reviewed and evaluated do not fully, support the standardized approach for lease extension, CPI increases, subleasing, insurance requirements, maintenance standards, and facility condition review or successor lease decisions, we have built in the framework of the the report a consistent policy that will help make the future decisions for lease extensions development and, redevelopment decisions that the airport and the city may take.

37:32 – 38:23•Speaker 5

One of the one of the schedules and attachments are references for the services for the different sites in in in how we got to the recommendations. We did a document review. We reviewed the existing policies, the leases, the fee schedules, the 2025 schedule, well as the proposed 2026 schedule, city code provisions at the airport master plan, other related airport documents. And we found that the key requirements were scattered across multiple administrative documents and sources and not consistently applied. The sites that were evaluated were the leases, including sites one, two, three, four, and six.

38:23 – 39:53•Speaker 5

And the comparison showed that the service models are materially different and that some leases, again, they're considered full legacy, legacy or master leases, FBO leases, and then others were more hybrid that allows specialty, operations. On March 13, Kurt was able to do a site visit and compared the lease obligations with the actual airport operations. The site visit found that the current operations do not neatly align with the written lease lease, obligations, especially where the services are performed through subtenants and are no longer active on-site, but there are are multiple reasons for that. And so the the report was evaluated to ensure FAA sponsor obligations through grant grant assurances, including the requirement for sponsor control, economic nondiscrimination, fee and rental structure, and airport revenue use, and self sustainability. So the key findings are moving more operating the the airport ecosystem into a mon modern administrative functions with rules and regulations, minimum standards rather than leaving the segmented and fragmented, I would say, different policies and and put them more in concise updated requirements rather than embedded in individual leases.

40:04 – 40:58•Speaker 5

And so the the city should also ensure that the essential services are available airport wide under clear standards and enforceable city oversight. The, there are recommendations on what to, several of the leases have already used the lease extensions and, some are near expiration. And so the report defines what, the city and the airport should do to, within a short time time frame and and then longer time frame in order to to address the the expiring leases that are coming up as well as I'll turn it over to you, Kurt, to talk about some of the on-site examination that you found as well as the development parcel.

41:00 – 41:51•Speaker 16

Thank you. I'll just stop sharing the screen. Generally, to summarize what Gloria said is that the over the last many years, the business activities and the master leaseholders have, in effect, worked together to do either assignments and acquiring each other's leasehold interest and and merging leasehold sites that you saw, the one the the sites that Lori was referring to, to really balance out their operations to meet the ecosystem or the activities at the airport. The existing leases all require, for instance, individual service requirements like flight training or maintenance or charter operations. And each of those individual leases requiring those provisions, there's not enough business at the airport to to support that for each individual leaseholder.

41:52 – 43:10•Speaker 16

So our recommendation is to do the administrative review of the lease to align what's actually happening at the airport with the actual leases, where I think your lease your leaseholders today are interested in making investments and expanding their operations. We know that one of the sites that's there is a very specific site that has a very well established, the day I was there, an extremely busy restaurant, both airport and off airport community folks that were there, on a leasehold interest that's, very, small in stature, and it's next door to or it's part of the existing FBO operation, it would seem reasonable that the airport could have negotiations with that tenant seek, capital improvement investment in exchange for lease term versus you you could go out to market to the RFP market and market those facilities. But, at the same time, you might not wanna displace the business operators that are in those facilities today that are providing valuable, economic service to the community. Gloria mentioned the development area. So I noticed there was there's two sites at the airport today that are, I'll call it, brownfield opportunities for development.

43:12 – 44:19•Speaker 16

You have options whether the city wanted to take its own capital resources and invest those properties to be the direct landlord or to instead use their resources through their capital improvement budget to bring the infrastructure up to the property and then allow the private sector to develop those properties and expand your revenue source by additional ground rent that you would achieve. Expecting the private sector to bring that infrastructure up to the airport and then to develop the airport or develop the site beyond that. Typically, airports might give rental credits for that off-site improvement work to bring the infrastructure in. But in studying this, I I believe that there's not enough, credits that you could achieve to amount to make the, development be financially self sustainable, to be a benefit to the community. And I think there's further opportunities there to have, again, to have discussions to how you've, increased development opportunities in a healthy way to to generate more land rent that's going to help the airport be financially self sustainable.

44:21 – 44:43•Speaker 16

So, generally, overall, you have a very healthy ecosystem. You have a very it's a seasonal airport to some degree. It doesn't, at this point, support commercial service. But as the community grows, that opportunity could reverse itself. And, you know, the airline industry itself is going through its own gyrations today.

44:43 – 45:36•Speaker 16

But the as the as Lake Havasu continues to develop, the airport's gonna play a vital role in connecting, your community to the rest of the world. And so I think with some investment in administrative time in reviewing these leases, all of which had consents and assignments and subleases that were I mean, excuse me, assignments and subleases that were consented to by the city, I think going back and re looking at those documents and, as Gloria said, taking some of the controls out of it that were embedded into the lease and put them in administrative compliance policy that refer are referred to would make it a much more, it would be more aligned with airport best practices and policy. So, Kip, with that, I'll turn it back to you. And, certainly, we're open for any questions that the council might have.

45:42 – 45:54•Speaker 15

I'm happy to field any questions as well. So, but this is the team that did the audit so I think they're the ones we need to point to as much as we can for their findings but happy to help any coordinate.

45:54 – 46:12•Speaker 1

So questions you may have. Yeah. Thank you, mister Turner. Yeah. So in our pack in, also available on the website for those at home is the executive summary of the findings and it outlines the priority recommendations, most, that were outlined here in this presentation. Vice Mayor Diaz, did you have a question or comment?

46:12 – 46:40•Speaker 6

Yeah, just a couple of comments and some questions. So, are we as a city and this is from the experts out there, are we trying to micromanage this too much? Or what do you think is the reason why we're not where we where we're at, we need to be at this point on the airport? We have kind of like lot of these things have been coming going on for years. Tell me what do you think what we're doing, what we can be doing better?

46:40 – 47:06•Speaker 6

And then I want to also talk about you talked about commercial flights, commuter flights, whatever. What are others I know there's other cities that are smaller than Lake Havasu that have a airport that have a viable commuter flight program, but I don't see it also here working in Havasu. You have to make money in order to to do that, but you can't just have be busy one or two days a week on the weekend. It has to be it has to be every day. So I wanted to get your expert opinion on a couple of those comments.

47:07 – 47:56•Speaker 16

So let me, if I may, and Gloria certainly jump in here. But, I think the first question is why this is the condition. Is it is I think the as you pointed out, it's been a legacy of leases over multiple years that, and that weren't really kept up or they were amended or they weren't really, written inconsistent to how the best practices for airport policy. When you embed policy requirements or code requirements into the lease, you, you know, you handcuff both the city and the tenant in that regard, and policies do change. And so when you take the policies out of the lease, like minimum standards, a leasing policy, rates, and fees, And and instead, you refer to them, you allow the discretion of the city to adapt those, and and you don't handcuff both the city and the tenant in that regard.

47:56 – 49:13•Speaker 16

And so, I think the tenants here at the airport have, again, have, again, worked together and morphed the recent acquisition of one of the businesses by Velocity FVO is bringing new dollars and opportunity and for investment that I think provide you an opportunity to sit down with that business and see what ideas they might have. I also note that you're, unlike other airports where the leases also include dedicated ramp space, many of your businesses are operating their businesses within the confines of a common area ramp. And so that has impacts to safety operations too, where, what might be a better formula and what we see at many airports is where the ramp is dedicated to the management of the tenant, or in this case, it would be the FBO, where you could actually turn that ramp into a revenue generating lease op where the FBO would possibly pay, rent for the ramp and manage that for the month to month tenants that might exist as tenants for the city, but also have the direct responsibility for managing the towing and, marshaling and fueling of aircraft on that common ramp to in a that would provide for a more safer environment.

49:15 – 49:35•Speaker 16

And so, I mean, I think there's there's a little bit more work to do. I again, I don't think it's terrible. I just think it's going to take some partnership, if you will, between those existing tenants and the city to find common ground. And I sense there's a willingness for that to take place. Specific to the air carrier service is you're right.

49:35 – 50:24•Speaker 16

There are there are airports, similar to or less stature than Lake Havasu that do have commercial service. And how those, services are being provided are typically subsidized by either essential air service funding, which comes through the federal government through providing for marketing and other services under the essential air service program, or the community itself is subsidizing, I'll call it a minimum guarantee of seats, to be provided. I'll point to one carrier that does this frequently. JSX is a kind of a boutique operator, carrier that provides commercial service in in markets like this. And and I know from just discussions with carriers like that that they're getting a minimum seat guarantee or funding in order to provide that.

50:24 – 50:55•Speaker 16

And as you pointed out, it it there has to be a revenue model that makes sense for them to continue to do service. Alternatively, you have service coming in and out of the airport under part one thirty five federal regulation charter service that's on demand. And I think you're seeing that activity in your airport today. It's just not a scheduled service. And the challenge with a one thirty five operation, in any community is that you might have somebody, you know, pick up, it's like a limousine.

50:55 – 51:35•Speaker 16

Right? So they're they're hiring that aircraft to fly, folks into your airport, but then that airplane has to leave with revenue generating passengers on it to go somewhere else. And and that deadhead leg is it causes challenges in the community. So you might have inbound passengers, but it's the outbound passenger that the airplane's leaving in an empty leg, and those inbound passengers are paying for that. And so it's extremely expensive. And and, you know, again, as the community grows and as the economics go around the airport, that could make more air carrier service more palatable or interesting to the service providers.

51:36 – 51:48•Speaker 6

Just one more question. This might be for Kip. Did have we reduced the frequency or the ability for the military to use our airport?

51:49•Speaker 6

K. Everything nothing's changed on that as far as them coming in? Okay.

51:54•Speaker 6

K. Well, thank you very much. Appreciate it.

51:56 – 52:39•Speaker 16

I did notice that your military I mean, you're you're you have a very diverse airport. I mean, there is a lot of military operations. And I noticed that those operations are being conducted, at the time I was there, they were being conducted on a separate ramp from the, I'll call it, the general aviation ramp. And that makes sense because you wanna differentiate that from those are typically larger aircraft. In some cases, if they're helicopters, they're operating where they're not shutting down, and they're just they're doing hot refueling, which is very typical for the military. And it's an approved function, but separating those traffic goes back to what I was saying about having a ramp management plan that assures the airport the airport's operating safely and efficiently.

52:41 – 52:58•Speaker 1

Yeah. Thank you, Kurt. A follow-up to vice mayor Diaz's comment about the essential air service grant. It's my understanding that those are not available to communities over 50,000. That's when we don't have that opportunity in Lake Havasu to explore, the only, option we would have would be to subsidize flights or seats.

52:59 – 53:39•Speaker 16

Yeah. I believe you have service today. Advanced Airlines flies in and out, and they they come out of Hawthorne air. They're, you know, they're based in Hawthorne, Southern California, and they're flying a part one thirty five, flight. And without getting into the details, they do it under a section three eighty DOT section part three eighty, which means they can sell seats in the airplane to individual passengers. And I think that's happening again today. But as I mentioned, I think the inbound flight is one thing. It's the outbound flight where, because of the if it the airplane's going out empty, the inbound passengers are subsidizing or paying for that leg, that makes it challenging.

53:39•Speaker 1

Yes. Yeah. Thank you. Are there any other questions or comments from members of the council? Yeah. Councilmember Campbell or excuse me. Councilmember Dolan?

53:47 – 54:19•Speaker 10

Just wanna say something. I'm I just hope that we are. I've heard some rumors about the military and adjusting how we're having them come in or out. I just hope that we are prioritizing them. It's it's it's a great service that they do. They come here, but also that it's the the money that comes into the city and fuel and stuff like that. So I just hope I think we all agree on council. We very much like the military, and we don't wanna do anything to limit them coming in and out. You know, of course, within reason, we've put a lot of effort in with the ARF truck and all that. So we just wanna make sure that that's that's operating a 100%. So

54:21•Speaker 1

Councilwoman Campbell? Yes.

54:23 – 54:48•Speaker 13

Great point. First off, I love that you said the ecosystem is working quite well because I have spoke with a lot of people and there's other communities that we're really blessed to have what we have. And I'm gonna go back to our original FOBs that that came into our airport back in the day. We were very lucky to have them twenty, thirty years ago. They are maturing and moving on, and some are staying and some are not.

54:48 – 55:34•Speaker 13

But I'm just saying I I am very thankful of our airport, and I am very thankful of all the people that put the time and a lot of risk and a lot of money back in the day into our airport. So I'm very proud of that. And I with the leases that we're talking about here, I like that you're saying that it's the you gotta change or be able to adapt and change to what the environment looks like because it wasn't too long ago we were sitting up here, and we were saying, I think, to one of our FOBs that you needed to have small small airport mechanic shop available, and they said it wasn't feasible to do it. And then we, the city, ended up getting a hangar prepared, if I understand correctly. And they were here for a short period of time, and now they're gone because they said that it's just not feasible.

55:34 – 56:05•Speaker 13

So you really gotta work closely with the partners that we have at the airport. They are the experts in the field and along with our manager, and thank you so much for the audit. I thought your overview and your executive summary was extremely detailed and on point. I just I like the flexibility of the leases that it just because we're doing it today doesn't mean we're gonna do it in thirty years from now and really just kind of feel how our city grows. I don't think we any of us thirty years ago would think Havasu is where it is today.

56:05 – 56:30•Speaker 13

So excited about that, but I have one big question. We have one development parcel that's going in, and we are putting a million dollars worth of infrastructure in. And you I really liked your executive summary, and you're sitting here at the table with me right now. Do you believe that's the biggest and best use for that airport at this time, or do you think there's something better that we could be doing with those funds to improve our airport moving forward?

56:31 – 56:43•Speaker 16

Yeah. Thank you for that question. I think look. Land at an airport is is valuable. And, you have two parcels of land, one of which is, I think, smaller than the other.

56:43 – 57:54•Speaker 16

And I think one might have opportunity to develop on where and the question is, do you develop do you take your capital and invest in those buildings and own the buildings and be the landlord as well, or do you just lease the land and have somebody else bring capital in to invest and you maximize your land rent and other revenue sources that you could get from that without the risk of using your capital to do that? My, you know, recommendation here is the latter is that you you, invest your money that you have in the infrastructure improvements on that large parcel to bring the water and sewer and electrical to the to the site boundaries so that then the then you put the site up for RFP to maximize the RFP. So I wouldn't use the resources that you have to build hangars and then expect the industry to come in and make these off-site improvements. I would take the resources you had and then put the infrastructure in to both the parcels where it's necessary and then put them out, for RFP or negotiate with your current tenants. Because I believe just from the tour and when I was there is that your your business partners in the FBO, they're interested in investing.

57:54 – 58:09•Speaker 16

And they made a big investment to begin with by acquiring the operation, and they seem to be doing very well with it. But I think you take advantage of that relationship to see if you can have a better partnership that's going to enhance your revenue streams with more land rent.

58:10 – 58:38•Speaker 13

Thank you for that answer, and I appreciate it, and I totally agree with it. And the one thing that you made a comment of is negotiating a lot of airports our size is only managed by one vendor or FOB. Am I correct? And negotiations, if they have the experience in the background that they can get it done, that and they're at the table right now and have vision, it would be easier if we actually partnered with them a little, or do you believe it should go out more to an RFP?

58:39 – 59:24•Speaker 16

So the first thing I would recommend, it's in our recommendations, is we would advise the airport to update and or establish and update their commercial aeronautical minimum standards. And so what those minimum standards set is for to be a business operating on the airport, what are the minimum standards or facility requirements that you have to have in order to conduct that business? That could be an FBO. That could be a maintenance shop. It could be as a subtenant of a master leaseholder. I think there's nothing wrong with that relationship to provide those services. They don't have to be a master tenant with you. I think that you first conduct or establish those minimum standards. And there's nothing stopping you if your tenant at the airport today says to you, hey. I like I see that piece of property there.

59:24 – 59:56•Speaker 16

We wanna negotiate with you. You have the right to do that. You are not required to do an RFP. The FAA does not require that. They encourage it. If there's multiple sources of demand for that site, you could pursue that. But you could also sole source negotiate with your current tenants. And so but I would first suggest that the minimum standards be established because if you have another vacant parcel of land, you want those standards to be created so it creates a level playing field for anybody else coming onto the airport.

59:59 – 1:00:10•Speaker 13

Thank you. And you could tell I'm not the expert. You said FBO. I and I was saying FOB, and I was thinking I knew that was wrong. But I appreciate you correcting me on that. And then, also, I definitely love your direction at this point. Thank you much.

1:00:11•Speaker 1

You're welcome. Any other questions? Councilor Verdolan?

1:00:14 – 1:00:50•Speaker 10

I have a question. I know we've had when we talked about development in that RFP or out there and and we were doing an RFP and all that, there was a there there's been talk that the city has to you know, for getting FAA money, the city has to have it. We think 50% of ownership of the hangars, for example, but we're you know, we've been told, well, we're not quite sure. We submit the grant and where we we apply for it, and then if they tell us at that point if it's something they'll pay for, can you kinda give us a little bit of understanding about that? Does it is there any requirements that the city has to hold and control a certain amount of the hangars or the development?

1:00:50 – 1:01:01•Speaker 10

Or because that's something we've been under the we've been under the impression of, that the city we have to put hangars in because we have to control, and we have to have at least half of the ownership. Is that anything you can kinda educate us on?

1:01:02 – 1:01:31•Speaker 16

So these the airport's owned by the city. So you are what's referred to as the airport sponsor. And so if the airport is if the airport's going to go out and seek federal funds, their airport sponsor here being the city of Lake Havasu is going to seek that those funds, as the government aid entity. Private sector does not go to the FAA to get grant money to provide those sources. So you'd be seeking federal grants to develop that property and build those buildings.

1:01:31 – 1:01:54•Speaker 16

My suggestion is is that you get the federal monies to in in to put the infrastructure in to improve the, to provide for some third party to come in and use private money, not federal money or not city money, to develop the buildings, and they would be paying you ground rent throughout the term of the lease that you would give them.

1:01:56 – 1:02:18•Speaker 10

Great. And I appreciate the insight. Because I think we we're kind of under the impression that, yeah, we're we're we're putting the grants, so we're getting the grants, we're putting in the infrastructure, but the infrastructure leads to private development. So and the private development is so I think that was the kind of the issue I thought we've had up until now that that we we felt we had to spend the money. So, that's something we can look look more into with the the grants and development.

1:02:18 – 1:03:11•Speaker 16

I think the think the alternative that you might have had is that if you were to expect the private sector to make the infrastructure improvements and build the facilities at the same time, that the cost for both of those combined, they could not charge enough, you know, fees or rents in their facility to make it sustainable over an extended period of time. Typically, airports would give an airport credit for making those off-site improvements and then building the buildings. But in I believe in this case is that you couldn't the the developer could not, get enough credit from you from the land rent to still make it financially feasible. And I think discussions I think you could have those discussions. They could I believe your tenant developers that are presented that, they could show you that math on paper.

1:03:11•Speaker 10

Thanks for the information.

1:03:14 – 1:03:33•Speaker 1

Alright. Are there additional questions before we open the public hearing? Alright. This is a public hearing. This item is, just for, review and discussion this evening, so there is no, action or, gonna be taken from the council, but this is still a public hearing, and we'd like to hear from anyone that would like to address the City Council on this item.

1:03:39 – 1:04:04•Speaker 1

Seeing now, we'll go ahead and close the public hearing. I'll bring it back to the council for any final, comments before we move on to the next item. Alright, thank you, Mr. Turner, for, the presentation. Thank you, Gloria and Kurt for providing this. It looks like we have, some work to do with some priority recommendations and, and next steps. My understanding, Mr. Turner, would be that we're going to start working through these priority recommendations?

1:04:04•Speaker 15

That's correct. Yeah. We're actually already working on many of those things, but yeah. Yeah. We wanna, fix as many things as we can.

1:04:11•Speaker 1

Okay. Excellent. And then as those items are required, they'll come back before council for, council review and approval. So excellent. Thank you so much for joining us.

1:04:19•Speaker 16

Thank you so much. Good night.

1:04:21 – 1:04:34•Speaker 1

Good night. Alright. We'll move on to item, 7.4, which is amendment number two to the Master Professional Services Agreement for On Call Airport Engineering Consulting Services with CNS engineers. Yeah.

1:04:34 – 1:05:17•Speaker 15

Me again. So every five years, the airport goes out to bid me, does a request for quotes or services for engineering services, for engineering on record for We have our own in house engineering that does a lot with us but these engineers are more focused on the FAA standards, the things that tie into FAA through our capital improvement program, through the FAA that we do through the ACIP program, Airport Capital Improvement Program. And so the recommendation by the FAA is that every five years you do this process. So Lake Havasu did this accordingly back in 05/11/2022 was the last time this was done. CNS engineers was chosen at that time.

1:05:18 – 1:05:40•Speaker 15

Their initial contract for their master services agreement was a three year term with two one year options to extend, giving us that five year period that the FAA then looks to us to do this again. We are in the second amendment to that. So this is what this is for you tonight, the second amendment which would be their fifth and final year of this master services agreement.

1:05:40 – 1:06:06•Speaker 1

Happy to take any questions. Thank you, mister Turner. Are there any questions from members of the council for mister Turner on this item? Is there any comment before we open the public hearing? Alright. This is a public hearing. Would anyone like to address the city council on this item? Seeing now, we'll go ahead and close the public hearing. Bring it back to council for discussion or possible motion. Mayor? Councilmember Campbell?

1:06:06 – 1:06:22•Speaker 13

I motion I move to approve the authorize the city manager to execute amendment number two to the master professional service agreement with CNS Engineering Inc. For an additional one year term and increase the city council's approval threshold to $100,000 per task order.

1:06:24•Speaker 1

We have a motion from council member Campbell, a second from vice mayor Diaz. Is there any additional discussion? Seeing none, we're ready to vote.

1:06:39•Speaker 4

Motion carries seven to zero.

1:06:41 – 1:06:54•Speaker 1

Thank you. Our next item is item 7.5, task order number 12 to the master professional services agreement for construction management services for the runway safety area improvement project phase one construction with CNS engineering's. Mr. Turner.

1:06:54 – 1:07:34•Speaker 15

Airport night. This one's a pretty quick one, I think. But you may recall in March, I came to you with the bid that was selected for the runway safety area work. This is an FAA, excuse me, ADOT program. It's a grant program project that we're doing. It's 90% or 95% funded. Have to look back and see now. But you already approved the project. This is for CNS engineers to actually do the task order of construction management, which is again one of the normal duties that we would task them to do. Happy to take any questions. The amount for this task is $99,002.50, I think, just under a 100,000, but it's here before you tonight.

1:07:35 – 1:08:04•Speaker 1

Thank you, mister Turner. And as you'd mentioned, 90% is, funded through ADOT, with the city matching at 10% for $9,925.70. Are there any questions from members of the council? Any comments? Alright. This is a public hearing, but I would like to address the city council on this item. Seeing now we'll go ahead and close the public hearing, bring it back to council for discussion or possible motion. Councilmember Dolan? Motion. Please.

1:08:04 – 1:08:20•Speaker 10

Move to approve task order number 12 to master professional services agreement with CNS Engineers Inc. For construction management services for the runway safety area improvements project, phase one construction in the amount of $99,257.

1:08:25•Speaker 1

We have a motion from councilmember Dolan. We have a second from councilmember Lynn. Is there any additional discussion? Seeing none, we're ready to vote.

1:08:39•Speaker 4

Motion carries seven to zero.

1:08:42 – 1:08:54•Speaker 1

Thank you. Item 7.6 is bid for annual concrete repairs and improvements to MJB Power LLC as the primary contractor and Groundwater Partners Inc. As the secondary contractor. Mister Young.

1:08:54 – 1:09:34•Speaker 11

Good evening again, mayor and council. As amazing as as my crews are, we quite often get pulled in or shifted in different directions. Sometimes it's hard to keep everything on the plate, and this is one little tool that will help do that. If we get pulled off onto storm cleanup or something, we can continue doing our work. If we have special projects, that we're gonna do that are larger than normal, we can have these guys come in and help help us out. Parks and rec also has a lot of concrete jobs that they take care of. Sometimes we just get busy, and we could use a a little assistance, and that makes this makes it easy for us. So with that, I'll take any questions.

1:09:35 – 1:09:59•Speaker 1

Thank you, mister Young. Are there questions from members of the council for mister Young on this item? Any comments before we open the public hearing? Alright. This is a public hearing. Would anyone like to address the city council on this item? Seeing none, we'll go ahead and close the public hearing, bring it back to counsel for discussion or possible motion.

1:10:00•Speaker 1

motion. Vice Mayor Diaz?

1:10:01 – 1:10:23•Speaker 6

I move toward the bid for the annual Concrete Repair and Improvements Services contract to MJB Power LLC as the primary contractor and Groundwater Partners Inc. As the secondary contractor and approve exceeding the City Manager's expenditure threshold but not exceeding the annual department's budget for the duration of the contracts.

1:10:24•Speaker 1

We have a motion from Vice Mayor Diaz, a second from Councilmember Dolan. Is there any additional discussion? Seeing none, we're ready to vote.

1:10:39•Speaker 4

Motion carries seven to zero.

1:10:41 – 1:10:54•Speaker 1

Thank you. And then our final public hearing of the evening is cons is construction item 7.7, construction contract for fiscal year twenty twenty five twenty six hot mix asphalt repairs to Sunland Asphalt and Construction. Mister Young.

1:10:56 – 1:11:25•Speaker 11

Good evening. Yes. Again, we have several repairs needed done, and we put them out to bid. Sunland did come in as the lowest bidder, and, we've we suffered these repairs over a long, bit of time. And so, they've been sitting out there a little bit and we're anxious to get them done. So I asked for your permission to give approval for Sunland for $795,300 to come in and make those repairs.

1:11:26 – 1:11:44•Speaker 1

Thank you, mister Young. Are there questions from members of the council for mister Young? Any discussion before we open the public hearing? Alright. This is the public hearing. Would anyone like to address the city council on this item? Mister Young, mister Wisdom, I think, wants to make a comment.

1:11:46 – 1:12:19•Speaker 17

Good evening, mayor and council. The guy who keeps our place clean. On the way up here tonight, I come out of Lake Havasu Avenue, turn on Mesquite. And a few years ago, they redid that whole intersection. And then if I recall, they put down white tiles for the white lines. Well, you can't see those anymore. It's totally black. You see maybe just a little fade of gray. And I don't know if this is appropriate time to ask him to, get that fixed. I'm sure there's other places that need some attention. Thank you.

1:12:19•Speaker 1

Yeah. Thank you, mister Wisdom. Yeah. Mister Young?

1:12:26 – 1:12:42•Speaker 11

That was a stain stamp that we did when we originally redid Lake Havasu Avenue. It was immediately dirty. As soon as it got done, it was very hard to keep clean. So we felt better just to go ahead and get it black again and take care of it and put regular crosswalks back in.

1:12:43 – 1:13:00•Speaker 1

Thank you. Alright. Would anyone else like to address the city council on this item? Seeing none, we'll go ahead and close the public hearing, bring it back to council for any discussion or possible motion. Mayor? Councilmember Dolan? Motion. Please.

1:13:00 – 1:13:13•Speaker 10

I move to award the construction contract for the fiscal year twenty twenty five twenty twenty six, hot mix asphalt repair project to Sunland Asphalt and Construction LLC in the amount of 795,300.

1:13:17•Speaker 1

We have a motion from council member Dolan, a second from council member Koch. Is there any additional discussion? Seeing none, we're ready to vote.

1:13:31•Speaker 4

Motion carries seven to zero.

1:13:33 – 1:13:53•Speaker 1

Thank you. Thank you. Next item on our agenda is item eight, the call to the public. This is where citizens have an opportunity to address the city council on items within the jurisdiction of Lake Havasu City. Your comments are limited to three minutes. You don't have to sign up for Call of the Public, and we didn't have anyone sign up. But if you would like to address the city council during Call of Public, just please make your way to the podium, state your name for the record, and share your thoughts.

1:14:00 – 1:14:13•Speaker 18

Hi. I'm Ham Swenson. I just had a question. A few meetings ago, did you not vote that call to the public was supposed to be moved to the before a lot of the other aspects of the agenda?

1:14:14•Speaker 1

We can't wait to wait conversation. But

1:14:16•Speaker 18

No. But I I recall that, so I was just surprised when I saw the agenda for this meeting that it was still at the back. So just bringing that up.

1:14:25•Speaker 1

Thank you. Would anyone else like to address? Yeah. Please, Sean, just make your way to the podium.

1:14:34 – 1:15:17•Speaker 3

First of all, I'd like to commend you guys on the excellent work that you're all doing here. This is a big city and it's growing fast and you guys are on top of it all. I couldn't believe every single vote was seven and zero. Perfect. When I was a city councilman, boy, was like, I don't know, sometimes it was like a zoo. Anyways, yeah, you know what, I mean when it comes to doing my show, there's nowhere else that you could see a show as great as the one that I put on. There's nowhere in Kingman to put one on like that. There's a limited area in Bullhead City. They do got that nice amphitheater there they put in. The help of Hilde, Hilde helped them do that.

1:15:17 – 1:15:51•Speaker 3

But really, when it comes to doing my show, I really enjoy working with the State Park down there. They're really nice people and they do a great job. I mean, they're a little bit on the, shall we say, expensive side. But I really look forward to maybe working with the city of, you know, Lake Havasu here to really turn Lake Havasu into a big blues destination, just like Memphis, just like Vegas, just like Nashville. I mean, we can do that.

1:15:51 – 1:16:34•Speaker 3

I have all the contacts. My publicist works for some of the biggest bands in the world. And at my avail, I can make calls just like that. Anyways, it just takes a lot of funding and stuff like that. So I mean, if there's something that we can work with the foundation and work with the city here, we can put Lake Havasu up there with all the other big cities that have great, great shows and stuff. I mean, know, you talk about Mammoth. Mammoth Blues Festival, that's up in Mammoth, California. That's been going on for, like, forty years. But, you know, it's my shows, I moved from California. We did seven years there, two years in Bullhead.

1:16:34 – 1:17:06•Speaker 3

We were interrupted by something called the Chinese flu for a couple years there. But then, you know, working with the county over there at Davis Park, let's just say the first year went great. The second year, they got a little more difficult to work with, and that's how I kinda stumbled into Dan Roddy over here at the park. He invited me down there to be part of the show and part of their outfit. And they invited me to stay there for ten years.

1:17:06 – 1:17:45•Speaker 3

Well, I'd like to stay there for longer. But anyways, that's a little bit about that as well as our organization. Woody Sock Blue is a hand up foundation. There's a lot of autistic people out there in this world. They just need a little help once in a while. And I'm not taking care of them or anything, but they want to take a class. They want to learn to weld. They want to find something that they can better their lives with even if it's just buying them a bed or something like that. Because we've done that too. We've done that too. Anyways, I've used up my time. Thanks a lot, everybody.

1:17:45 – 1:18:01•Speaker 1

Thank you. Would anyone else like to address the city council during call to the public? I'm sorry. You get one opportunity. Yeah. Yeah. Thank you, though. Yes. Alright. Alright. We'll go ahead and close the call to the public. Item nine is current events. Are there any council committee reports?

1:18:01•Speaker 7

Mister mayor.

1:18:01•Speaker 1

Yeah. Councilmember Lynn?

1:18:02 – 1:18:23•Speaker 7

Yes. I was asked by, Ali, who is our HIAAC advisory, to to report on it. Yes. The Havasu it's kinda long, so give me a moment. The Havasu Youth Advisory Council, also known as HIAAC, is a group of high school students dedicated to leadership, service, and youth engagement in Lake Havasu City.

1:18:24 – 1:19:05•Speaker 7

These students help shape the future of our community by bringing youth perspectives and concerns to City Council while promoting positive change throughout involvement, leadership and community service. Hayek meets on the first Thursday of every month and includes student leadership positions such as chair, vice chair, secretary, treasurer and historian. Through volunteerism, teamwork and civic involvement, these students continue to grow as leaders while making a positive impact throughout the community. Since August 2025, Hayek members have remained actively involved throughout the community. Students attended the League of Arizona Cities and Towns Annual Youth Showcase representing Lake Havasu City alongside the mayor, city council, and staff.

1:19:05 – 1:19:41•Speaker 7

They also participated in the London Bridge Days parade, Veterans Day parade, volunteered at the annual community dinner, and Vietnam Veterans Day event. Citywide cleanup for Earth Day and spread holiday cheer through Christmas caroling at local nursing homes. They were really busy this year. Hayek members also attended and participated in the city council planning session, continuing to learn more about local government and leadership. Most recently, students worked with doctor Jenna Louder from MCC on public speaking skills and developing strong elevator speeches to help prepare them for future opportunities.

1:19:41 – 1:20:27•Speaker 7

To close out the school year, Hayek students will volunteer at the River City United Way Safari Fundraiser, helping support efforts to combat food insecurity within our community, and I believe that's this weekend. The Hayek advisers would also like to congratulating graduating seniors, James Intak, Raiden Sari, Emma Trejo, and Elena on not only graduating, but on being outstanding members of the youth council. Their dedication to civic engagement, leadership, volunteerism, and serving the Lake Havasu City community has made a lasting impact. It's been an honor watching each of them grow into strong young leaders, and we wish them all the best in their next chapter. If you're a high school student interested in becoming part of Hayek, please contact Allie Blum at City Hall.

1:20:27•Speaker 7

Her number is (928) 453-4141 for more information.

1:20:33•Speaker 1

Thank you, council member Lynn. Are there any other council committee reports? Yeah. Vice mayor Diaz?

1:20:38 – 1:21:20•Speaker 6

Just a quick update on on the Golay Kavasu. So the reason we did the action tonight is because they had to, according to their bylaws, they had to give a fifteen day notice to change those bylaws. So they did that. We had the meet special meeting, last Wednesday, and then we took the action we did tonight. The current the CEO, Sean Buckley, is no longer with the company. He left on March on May 1. So they are currently looking for a new CEO, and they're working with a third party recruiter to do that. And I just want to give that information out to the citizens. So they are on the right path, and we will be working with them with the new CEO once that person comes on board. And that's it. Thank you.

1:21:20•Speaker 1

Thank you. Councilor McCoak?

1:21:24 – 1:21:42•Speaker 8

I have some information from the PED Board. I know is my microphone not working? Okay. I made some notes just because this is a little bit more in-depth. But they have a few development initiatives that they've been working on in the North Side, and one of them is the Opportunity Zone two point o.

1:21:42 – 1:22:24•Speaker 8

It was submitted to Mohave County. Like Havasu City has participated in the federal Opportunity Zone Program since its inception, and it will continue to do so until the current designation sunsets, which is approximately two and a half years from now. Local developers have used this opportunity zone to invest and deliver tangible community benefits, including the revitalization of the shopping center, new medical and surgery facilities, restaurant openings and upcoming affordable housing projects. However, the current track does not qualify for the Opportunity Zone two point zero. Its 2024 medium family income has risen to 95,156, which is 134% of the qualifying threshold, making it ineligible.

1:22:24 – 1:22:56•Speaker 8

As the state director observed, this program is working as it was intended. The investment raised incomes, reduced poverty to the point where the designation is no longer needed. That was a success story even if it closes the door on the renewal. To ensure Lake Havasu City can continue benefiting from the program, the PED and the City of Lake Havasu have jointly submitted a letter of support nominating another census track as an Opportunity Zone two point o site. This track runs along the east side of the Highway 95 from the Lake Havasu City Gateway north to the I 40 near Yucca.

1:22:56 – 1:23:31•Speaker 8

This corridor is largely underdeveloped but strategically positioned along a major transportation route. It makes it well suited for commercial, industrial and mixed use investment. We're confident it represents the kind of long term opportunity the two point zero program is designated to unlock. Additionally, Apex West, Mohave County rezoning support. PED is assisting Apex West in rezoning approximately 36 acres in Mohave County, located west of the shops of Lake Havasu from residential recreational to m two general manufacturing, the proposed use as a warehouse distribution center.

1:23:31 – 1:23:54•Speaker 8

And third and final, sorry, is the ICSC Las Vegas, May eighteenth through the twentieth. Lake Havasu City will have a booth at the ICSC Las Vegas, representing multiple local shopping centers and new development opportunities. The ICSC is the premier real estate convention and a key venue for continuing with national retailers, developers, and investments.

1:23:56 – 1:24:20•Speaker 1

Thank you, council member Coke. Are there any other council committee reports? Alright. Item 10, our future meetings. We will have our budget and CIP work session on Thursday, 05/14/2026 at 9AM. And then on Tuesday, 05/26/2026 at 05:30PM, we'll have a regular meeting. Item 11, are there any future discussion items? Item 12, we are adjourned. Thank you for being here. Be kind, and we'll see you next time.

This transcript was automatically generated from the official public meeting video and is presented unedited. It reflects remarks made on the public record by elected officials, staff, and public commenters. Transcript accuracy may vary; view the original recording for reference.